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The way I see it there are three alternative routes which might lead to a jump in the share price.
1.Managerial excellence
The executive directors have implemented a plan for revival. This required a survey of customers to discover what they were doing right and where they were going wrong. They are now trying to focus on serving customers better.
At the same time they are reducing overhead largely through redundancy.
These two objectives may be in conflict as staff become demoralised and offer poorer service to customers. Or…. deft management can pull off the trick of improving staff morale, enthusing customers and raising profits. It all depends on the day to day handling of sensitive issues. I cannot judge from this distance if they have the talent to do all of this.
However, Andrew Burgess. the 18.95% shareholder, is confident they can. Furthermore, the executives are soon likely to have supportive and knowledgeable non-executive directors providing the necessary oversight and insight and guidance. Today’s news of the ex-CEO, Hew Balfour, joining as a NED is encouraging.
2. A merger with Styles and Wood
Styles and Wood are very similar to HVE. They supply the same market and were badly shaken by the recession.
Until recently they had similar turnover numbers, but in the last year they have diverged, with S&W turnover jumping 18.6% to £115m while HVE fell. S&W’s order……To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
